ADNOC Gas Adjusts Production Amid Strait of Hormuz Crisis

UAE’s ADNOC Gas has made temporary adjustments to its liquefied natural gas (LNG) and export-traded liquids production due to shipping disruptions in the Strait of Hormuz, as the ongoing conflict in the region continues to escalate.

In a filing on the Abu Dhabi Securities Exchange, the company said it is actively working with customers and partners on a transaction-by-transaction basis to fulfill commitments wherever possible. ADNOC Gas confirmed that debris had fallen at some facilities but that its core processing integrity remained intact.

The effective closure of the Strait of Hormuz, a narrow channel along the Iranian coast, has halted the passage of roughly 20 percent of the world’s oil and LNG since US and Israeli airstrikes on Iran began on February 28. Iran has warned it could target energy and water infrastructure in Gulf countries, while US President Donald Trump vowed to strike Iranian electricity facilities within 48 hours if the strait is not reopened.

“Operations are continuing safely across ADNOC Gas asset base. We remain committed to delivering shareholder value,” the company said in the filing. It added that ensuring the safety of staff, contractors, partners, and operations while continuing to serve customers remained its top priority. ADNOC Gas did not provide further details on the temporary adjustments to LNG output. Its Das Island facility, located in the Gulf, has an LNG capacity of 6 million tonnes per year and relies on tankers passing through the Strait of Hormuz to transport products.

The UAE’s Habshan gas processing complex, which handles 6.1 billion cubic feet per day, was shut on March 19 after debris from intercepted missiles landed in the facility. Operations at Habshan remain suspended pending safety assessments. The International Energy Agency has described the disruptions across the Gulf as the worst in history, surpassing the 1973 Arab oil embargo in terms of global economic impact.

Experts said Middle East national oil companies (NOCs) are prepared to manage such disruptions. Adnan Merhaba, partner and energy practice lead at Arthur D. Little Middle East, noted that regional NOCs have long-established crisis management procedures and risk mitigation plans. He highlighted Saudi Arabia’s East-West Pipeline, which can transport 7 million barrels per day from the Eastern oil fields to the Red Sea, as an example of strategic planning to bypass the Strait of Hormuz.

Vijay Valecha, chief investment officer at Century Financials, said regional producers are focusing on keeping supply moving, while global energy companies are reducing exposure and reassessing risks. He added that although oil prices above $100 per barrel have absorbed some impact, the global energy market remains fragile.

The ongoing conflict has also affected other Gulf producers. QatarEnergy declared force majeure on LNG exports after Iran attacked the Ras Laffan hub on March 18, damaging 17 percent of its production. TotalEnergies reported losing 15 percent of its global oil and gas output due to disruptions in the UAE, Qatar, and Iraq. Bahrain’s BAPCO Energies also declared force majeure after an attack on its plant, potentially affecting 400,000 barrels per day of production.